David Einhorn has officially dropped his lawsuit against Apple Inc. (AAPL) after the company decided not to keep Proposal #2 open. The judge sided with him last week, but he likely left the suit open until after this week’s shareholder meeting to ensure Apple wouldn’t push a vote on the proposal.
Apple Inc. (NASDAQ:AAPL) has officially removed the controversial shareholder proposal, and as a result, David Einhorn has dropped his lawsuit against the tech giant. Einhorn filed the lawsuit because he believed that if the proposal passed, it would limit the company’s ability to issue preferred stock. Einhorn has been trying to talk Apple into issuing preferred stock for months, and he won his lawsuit on Feb. 22.
Today MarketWatch reports that Einhorn’s case against Apple Inc. (NASDAQ:AAPL) is now officially closed after Apple said it would not keep the controversial proposal open. The vote on it was scheduled to occur at the shareholder meeting earlier this week, but Apple removed it from consideration for the shareholders. Einhorn filed documents to officially drop his suit against Apple after the shareholder vote on the proposal he was concerned about didn’t happen on Wednesday.
Einhorn won his suit a week ago because the judge decided that Apple Inc. (NASDAQ:AAPL) had lumped more than one proposal into one item on the shareholder proxy. Regulatory laws require that the proposals be separated, although in practice this has not been done.
In related news, Einhorn’s Greenlight Capital hedge fund, which manages over $8 billion, gained .3 percent in February, according to anonymous sources cited by Reuters. Greenlight Capital owns about 1.3 million shares of Apple Inc. (NASDAQ:AAPL), which is one of the largest positions held by the hedge fund.
Shares of Apple have fallen about 3 percent since Einhorn filed his lawsuit. The stock is down another 2 percent today, dipping dangerously close to the $430 per share mark.